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GRAINS-Soybean prices fall to 2-mth low on ample supply
March 14, 2017 / 3:26 AM / 6 months ago

GRAINS-Soybean prices fall to 2-mth low on ample supply

    * South American production weighs on soybean prices
    * Wheat edges higher, but weather forecast caps gains
    * Corn little changed

    By Colin Packham
    SYDNEY, March 14 (Reuters) - U.S. soybean prices dropped to
a two-month low on Tuesday, dragged down by expectations for
record South American production in a global market that is
already amply supplied.
    Wheat edged away from a one-month low touched in the
previous session, while corn prices were unchanged. 
    The most active soybean futures on the Chicago Board of
Trade had fallen 0.22 percent to $10.03-3/4 a bushel by
0240 GMT. That was near their weakest since Jan. 11 at $10.03,
marked earlier in the session.
    "All the news points to really good South American (soy)
production, which means there is a lot of kicking around
globally," said Phin Ziebell, agribusiness economist, National
Australia Bank.
    Increased South American production comes as U.S. farmers
are expected to plant more soybeans next season, adding to
global inventories.
    Private analytics firm Informa Economics raised its 2017
U.S. soybean plantings forecast to 88.7 million acres, from
88.647 million in January.
    The most active wheat futures rose 0.23 percent to
$4.31-1/2 a bushel. They closed down 2 percent on Monday, after
hitting their weakest since Feb. 9 at 4.30 a bushel.
    Despite edging higher, wheat remains under pressure from
forecasts for beneficial rains for U.S. crops.
    The Commodity Weather Group said updated forecasts raised
the likelihood of much-needed rain in the U.S. Southern Plains,
although showers could miss some dry areas.
     The most active corn futures were little changed at
$3.60-3/4 a bushel. They closed down 0.9 percent in the previous
session, when prices marked their lowest since Feb. 1 at
$3.60-1/2.
    The U.S. Department of Agriculture reported export
inspections of U.S. corn in the latest week at 1,547,022 tonnes,
at the high end of a range of trade expectations.
    Private analytics firm Informa Economics raised its
projection of U.S. 2017 corn plantings to 90.8 million acres,
from its January forecast of 90.5 million, trade sources said. 
        
 Grains prices at  0239 GMT
 Contract       Last   Change  Pct chg  Two-day chg    MA 30  RSI 
 CBOT wheat   431.50     1.00   +0.23%       -2.04%   450.79    27
 CBOT corn    360.75    -0.25   -0.07%       -0.96%   374.06    26
 CBOT soy    1003.75    -2.25   -0.22%       -0.27%  1039.23    28
 CBOT rice      9.80   -$0.04   -0.36%       +1.19%    $9.71    73
 WTI crude     48.39   -$0.01   -0.02%       -0.21%   $52.65    14
 Currencies                                                       
 Euro/dlr     $1.065   $0.000   +0.01%       -0.14%               
 USD/AUD      0.7557   -0.001   -0.13%       +0.23%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Joseph Radford)
  

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